Insurance Flashcards
Premium
Amount of money people pay to the insurance company
Types of motor insurance
3rd party fire and theft
Fully comprehensive
No claims bonus
If you don’t make a claim the premium is cheaper
3rd party fire and theft
If it’s your fault you are not covered or your car only the other person.unless is stolen or goes on fire. Cheaper.
Compensation
The money that an insurance company pays for damage
Fully comprehensive insurance
Everyone in the crash is covered, more expensive
One example of why there would be a loading
Young driver
One example of why there would be a discount
No claims
Proposal form
Filled out when applying for Insurance
Must tell the truth
The insurance company says yes or no
Policy
A contract between you and the insurance company that gives details about risks covered
Claim form
When you suffer a loss and you want compensation you fill it out. You may need evidence to back up your claim.
5 principals of Insurance
Utmost good faith Insurable interest Subrogation Indemnity Contribution
Utmost good faith
You must always tell your insurance company the truth
Insurable interest
The item must have a value
Contribution
If you are insured by two or more companies, they will pay equal amounts which will add up to your compensation
Indemnity
You cannot make a profit from insurance
Subrogation
If there is a dispute over who’s fault it is, the insurance company can continue the claim in your name
Actuary
Works for insurance company , uses statistics to work out the risk of an accident happening, and the premium
Insurance broker
Person who you pay to contact many insurance companies to find the best deal eg. Chill insurance
Loss adjuster
Investigated claim for the insurance company, makes sure if the compensation is fair
Assessor
Investigated claim for the person who has claimed, makes sure if the compensation is fair
Risk
The likelihood of something happening
Premium
Amount people pay for insurance
Claim
When damage is done and asking the insurance company to pay for it
